Despite it’s controversial value and shaky past, Netflix still has a lot of value. Citigroup Inc. (NYSE:C) certainly thinks so and that’s why they recently claimed that the popular video streaming service is a “Screaming Buy”.  Citigroup Inc. (NYSE:C) wants people to buy Netflix, Inc. (NASDAQ:NFLX) stocks but people are “screaming”

Although Netflix, Inc. (NASDAQ:NFLX) has seemed to rebound somewhat after their troubles earlier this year, there is still some major risks regarding the investment of their stocks.  These risks include tough competition and content acquisition requirements. There’s also plenty room for uncertainty. I think the real concern here is this: will people follow Citigroup’s advice and purchase Netflix stocks?

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Let’s explore the risks a little further. We will start with tough competition. Right now, Netflix, Inc. (NASDAQ:NFLX) and Hulu are the only two companies offering a small monthly price for unlimited access to movies and tv shows. While Netflix has the upper hand here thanks to more content that doesn’t come with an expiration date, Hulu does supply customers with the most current television shows and movie trailers. Also, Hulu is free for customers who watch content exclusively on their PC. If they want to take their favorite shows on the go, they’ll have to sign up for paid service. Amazon.com, Inc. (NASDAQ:AMZN) also offers unlimited tv shows and movies to Amazon Prime subscribers. For one yearly fee, Prime users can access their favorite films and tv episodes as well as select books. Prime users also free next day shipping on most of their Amazon purchases. Although things look for for Netflix, Inc. (NASDAQ:NFLX) right now, that’s no guarantee it will last.

Next topic is content acquisition requirements. In order for  Netflix, Inc. (NASDAQ:NFLX) to provide their customers with movies and tv shows legally, they need to work directly with the film companies to obtain content rights, which often comes at a high price. If Netflix loses more subscribers in mass numbers in the near future, the company could be in big trouble.

The last topic is uncertainty. There are no guarantees in business and life. Netflix could fall as quickly as they first rose.

Whitney Tilson would likely agree with Citigroup about Netflix.

SEE RELATED: WHITNEY TILSON: NETFLIX IS LIKE AMAZON 10 YEARS AGO

At press time,  Netflix, Inc. (NASDAQ:NFLX) was up 4.81 at 12:02 pm eastern standard time.